FAA Outsources Service In Spite Of Union Objections
The FAA announced Tuesday it has
selected a team headed by Lockheed Martin to provide services now
offered by the agency's automated flight service stations. The
total evaluated cost of the five-year contract, with five
additional option years, is $1.9 billion and represents estimated
savings of $2.2 billion over the next ten years.
The FAA selected Lockheed Martin, based in Bethesda, Maryland,
for its demonstrated ability to deliver high-quality safety and
services and technical excellence at a competitive cost while
providing a seamless transition to new operations. Under continued
FAA oversight, Lockheed Martin will operate flight service stations
to the agency's strict safety and service requirements.
Approximately 2,500 FAA employees now provide services at 58
automated flight service stations in the contiguous 48 states,
Hawaii and Puerto Rico. Flight service specialists provide a
variety of services, including weather briefings, inflight radio
communications, flight planning and search-and-rescue support,
primarily to private and non-airline commercial pilots. These
specialists do not separate or control aircraft.
Studies by the FAA and the Department of Transportation's
Inspector General identified significant potential cost savings
among automated flight service stations. FAA spending on flight
service operations totaled about $500 million in fiscal year 2003.
Of these total operating costs, only $60 million was offset by
federal fuel taxes collected from general aviation. Additionally,
many automated flight service stations contain outmoded equipment,
are in need of upgraded technology and are housed in deteriorating
buildings.
After completing a careful review,
the FAA formally announced in December 2003 that its flight service
stations met the criteria for competitive sourcing and that it
would conduct a competition under the Office of Management and
Budget's Circular A-76 guidelines for an improved way to provide
flight service operations.
The FAA evaluated five competing service providers, including
the incumbent government organization, on the best value to the
government for the delivery of effective services to support safe
and efficient flight. The FAA required each potential service
provider to demonstrate savings of almost $1 billion over ten
years.
Lockheed Martin will assume operations in October of this year.
Incremental consolidation of the 58 current flight service stations
will begin in April 2006 and is expected to result in 20 sites by
the end of March 2007. More information on the results of the
competition is at